Partial State Compensation for the Cost of Ukrainian-Made Agricultural Machinery and Equipment

Partial State Compensation for the Cost of Ukrainian-Made Agricultural Machinery and Equipment is sponsored by Ministry of Economy of Ukraine. This program aims to support national manufacturers and stimulate demand for Ukrainian-made agricultural products. A poultry farm looking to purchase or upgrade its machinery and equipment from Ukrainian producers could benefit from this compensation.

Made in Ukraine: renewed programme of compensation for the cost of Ukrainian agricultural machinery and equipment has been launched, Yuliia Svyrydenko | Ministry of Economy of Ukraine Made in Ukraine: renewed programme of compensation for the cost of Ukrainian agricultural machinery and equipment has been launched, Yuliia Svyrydenko The programme of partial state compensation for the cost of Ukraine-made agricultural machinery and equipment, renewed by the Government, has been officially launched.

The relevant order on the formation and approval of the List of domestic machinery and equipment for the agricultural sector, the cost of which is partially compensated by the budget, was signed by First Deputy Prime Minister – Minister of Economy of Ukraine Yuliia Svyrydenko during the presentation of the Made in Ukraine economic platform and meeting with entrepreneurs of Chernihiv region chaired by President of Ukraine Volodymyr Zelenskyy.

As First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine emphasised, the signing officially launched a compensation programme for Ukrainian-made agricultural machinery. By purchasing machinery from the manufacturers on the List, farmers will be eligible to receive 25% of the cost of this machinery back. “The compensation programme for farmers has proven to be extremely effective in previous years.

The share of Ukrainian products in the domestic market doubled in 2017-2021 due to the created demand and price advantage. Production increased from 5,000 to 12,000 units, half of which were exported. The programme helped to attract investment in the industry, create jobs and generate additional revenues for budgets at all levels.

Currently, compensation to farmers is part of the Made in Ukraine economic programme. And I am convinced that it will become one of its pillars. The state budget for 2024 provides for a billion hryvnias for the programme.

According to estimates, this will be sufficient to satisfy the requests for domestic machinery from about 4,000 agricultural producers. Most importantly, we are giving a new impetus to the development of machine-building enterprises.

The support is expected to double the supply of domestic machinery and equipment in the market, launch the production of new items, and increase investors’ interest in the industry,” Yuliia Svyrydenko said. The programme will help farmers who buy from the listed producers save 25% on their purchases this year. Imports of agricultural machinery and equipment may be reduced by up to 10%.

In addition, the programme will help create about a thousand new jobs. As of 8 April 2024, the updated list includes 964 nomenclature items of products from 21 Ukrainian manufacturers of agricultural machinery and equipment. The list will be updated following the receipt and consideration of new applications from machinery and equipment manufacturers.

As a reminder, on 8 March, the Government improved the mechanism for using the funds allocated for compensation to farmers for purchased machinery and equipment. In particular, it has taken into account new business circumstances related to Russia’s aggression against Ukraine, simplified the mechanism and provided a wider range of manufacturers with the opportunity to be included in the list.

The key requirements for being included in the list are the level of localisation, the availability of a certificate of compliance with the quality management system in production, the share of labour costs, etc. In order to be included in the list, a manufacturer of machinery and equipment needs to submit an appropriate application and related documents to the Ministry of Economy.

Applications for the inclusion of machinery and equipment in the list in the current budget period are submitted by October 31. Machinery and equipment under the applications submitted after November 1 may be included in the list for the following year.

To receive partial compensation from the state for the cost of the purchased machinery or equipment, an agricultural producer must choose a supplier from the list on the website of the Ministry of Economy, purchase the necessary machinery and submit an application and supporting documents to the authorized bank.

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